PNC Infratech’s shares hit a 52-week high on Tuesday after the infrastructure development and construction company announced the divestment of 12 of its Road Assets to Highway Infrastructure Trust.

PNC Infratech’s shares hit an intraday high of Rs 427.90, 10.6% higher than their previous closing price on the National Stock Exchange (NSE). At 3:15 pm, the stock was trading 4.03% higher at Rs 402.50.

In an exchange filing on January 16, PNC Infratech announced that the company and its wholly-owned subsidiary, PNC Infra Holdings, have executed definitive agreements with Highways Infrastructure Trust (HIT) to divest 12 of the company’s road assets. 

HIT is an Infrastructure Investment Trust (InvIT) sponsored with funds, vehicles and/or accounts managed and/or advised by affiliates of KKR & Co. Inc.

Among the road assets, 11 are National Highway (NH) Hybrid Annuity Mode (HAM) assets, and one is a State Highway BOT (Build Operate Transfer) Toll asset. The assets highways are approximately 3,800 lane km in Uttar Pradesh, Madhya Pradesh, Karnataka, and Rajasthan. 

The transaction has an enterprise value of Rs 9,005.7 crore. It is subject to any adjustments as stipulated in the definitive agreements, making it one of the largest in terms of value in the Indian Roads sector. The deal’s equity value translates to Rs 2,902 crore (including cash) on invested equity of Rs 1,740 crore.

PNC Infratech has a portfolio of 27 road HAM and BOT projects in different construction and operation stages, including the 12 assets being divested by PNC Infratech.